According to the penalty ticket, Longyou rural commercial bank was fined 1.5 million yuan in accordance with Article 46 of the banking supervision and administration law of the peoples Republic of China for failing to perform the three inspections on the loan and the loan funds were used by others.
According to Tianyan investigation, Zhejiang Longyou rural commercial bank, formerly known as Longyou County Rural Credit Cooperative Association, was established on November 1, 2004.
In addition, Hu Shoufang, the relevant person in charge of Zhejiang Longyou agricultural and commercial bank, was given a warning and punishment by Zhejiang Quzhou banking and Insurance Regulatory Bureau for failing to fulfill the three checks on the banks loans and was directly responsible for the use of the loan funds by others.
According to the interbank certificate of deposit issuance plan, Longyou rural commercial bank has issued inter-bank certificates of deposit from 2015 to 2018, but it has no issuance plan since 2019.
According to the latest issuance plan of interbank certificates of deposit, as of the end of the third quarter of 2017, the total assets of the bank were 12.284 billion yuan, the balance of various deposits was 10.996 billion yuan, and the balance of various loans was 8.033 billion yuan. In the first three quarters, it realized 477 million yuan of operating revenue and 85 million yuan of net profit.
It is worth noting that as of the end of the third quarter of 2017, the agricultural loan balance of Longyou rural commercial bank was RMB 7.430 billion, accounting for 92.49% of the total loan balance of the bank.
In terms of financial situation, from 2015 to the end of 2017, the non-performing loan ratio increased year by year, which were 3.49%, 3.82% and 3.97%, respectively.
For the financial situation of the past two years, the reporter called the relevant telephone to understand, as of the time of publication, no one answered.
This is not the first time that Longyou rural commercial bank has been severely punished.
As early as November 28, 2018, according to the administrative penalty information disclosure form released by the then Quzhou banking regulatory bureau, Zhejiang Longyou agricultural and commercial bank was fined 1.3 million yuan by Zhejiang Quzhou Banking Regulatory Bureau for four illegal facts, namely, illegally issuing real estate loans, misappropriation of credit funds, illegal custody and handling of business by employees, and false increase of loans.
In the past two years, Zhejiang Longyou rural commercial bank has been punished twice by the banking regulatory authorities, and the total amount of punishment for the two times is about 3 million.
Recently, the China Banking and Insurance Regulatory Commission (CIRC) issued the notice on looking back to rectify the disorder in the banking and insurance market, and organized the work of looking back to rectify the disorder in the banking and insurance industry. Among them, three checks on loans are not due is one of the focuses of credit management.
According to Article 35 of the law of the peoples Republic of China on commercial banks, commercial banks should strictly examine the use, repayment ability and repayment method of borrowers for loans; meanwhile, Article 59 stipulates that commercial banks may, in accordance with relevant provisions, formulate their own business rules and establish and improve their risk management and internal control systems.
The method of bank credit management also emphasizes the importance of loan three check, and requires customer managers and auditors to make pre loan investigation, loan time review and post loan inspection.
Not only agricultural commercial banks, but also Agricultural Bank of China, China Construction Bank, agricultural Commercial Bank of China and other banks have been punished repeatedly for the three checks of loans, which is still a serious area of fines for banks.